Rising Demand for Leather Bags Drives Growth in the Global Leather Goods Market
The Global Leather Goods Market is estimated to be valued at US$ 2932.5 Billion in 2021 and is expected to exhibit a CAGR of 5.18% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
The leather goods market refers to the manufacturing and sale of various products made from leather, such as bags, wallets, belts, and footwear. These products are highly sought after for their durability, style, and luxury appeal. The need for leather goods is driven by the growing fashion consciousness among consumers, increased disposable income, and changing lifestyles. Leather goods offer numerous advantages, including long-lasting quality, versatility in design, and timeless appeal. As a result, there is a significant demand for leather bags, especially among the urban population, which further fuels the growth of the market.
Market Key Trends:
One key trend in the leather goods market is the rising demand for eco-friendly and sustainable products. With increasing environmental concerns and growing awareness about animal cruelty, consumers are leaning towards alternatives to traditional leather goods. As a response to this trend, many companies are now focusing on developing and promoting vegan leather products made from materials like pineapple leaves, mushroom leather, and recycled plastics. These eco-friendly alternatives offer similar qualities to genuine leather while addressing environmental and ethical concerns. As a result, the market is witnessing a shift towards sustainable and cruelty-free leather goods, which is expected to drive growth in the coming years.
The leather goods market can be segmented based on product type, distribution channel, and region.
Based on product type, the dominating segment in the leather goods market is the handbags segment. Handbags are in high demand due to their functionality and style, making them a popular choice among consumers. Additionally, the rising disposable income and changing fashion trends have increased the preference for designer handbags, further driving the growth of this segment.
In terms of distribution channels, the online segment is dominating the market. The increasing penetration of smartphones and the internet has led to a surge in online shopping. Convenience, ease of access, and a wide range of options available online have contributed to the dominance of this segment. Moreover, the ongoing COVID-19 pandemic has accelerated the shift towards online shopping as consumers prefer contactless transactions and home delivery.
The Global Leather Goods Market Size is expected to witness high growth, exhibiting a CAGR of 5.18% over the forecast period (2022-2030). The market size for 2021 was valued at US$ 2932.5 billion.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the leather goods market. The region has a growing population, rising disposable income, and increasing urbanization, which has fueled consumer spending on luxury and fashion products. Additionally, countries like China and India are major leather goods manufacturers and exporters, further boosting the growth of the market in this region.
Key players operating in the leather goods market include LVMH Moët Hennessy Louis Vuitton SE, Kering S.A., Adidas AG, Hermès International S.A., Dolce & Gabbana Luxembourg S.à.r.l., Overseas Leather Goods Company Pvt Ltd, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation. These key players have a strong market presence and offer a wide range of leather goods to cater to the diverse preferences of consumers.